Just by knowing which program offers the best rate
Round-the-world (RTW) award tickets are tailor-made for mileage redemption, as the published fares are high, up to $11,000. But to use your miles wisely takes a bit of nuanced knowledge.
The key is to grasp the difference between the two types of award charts, flight-distance and regional. The former categorizes trips by miles flown—the longer the trip, the more miles it takes—whereas the latter groups trips by region, charging a flat rate from one region to another. All clear so far?
Only one-third of the airlines offering a RTW ticket use a flight-distance award chart, which sounds like good news. After all, isn’t a flat rate better than going by-the-mile when you’re going around the world?
Actually, no. The flight-distance programs offer some of the best RTW rates—and the differences can be eye-popping.
[aside headline="Save 66% on RTWs" alignment="alignright" width="half" headline_size="default"]Buy 145,000 points from Amex Rewards (500,000 annual limit) for $3,625 and transfer them to All Nippon for RTW itineraries under 25,000 flight miles, for a savings of $7,230 (66%) over the pub-lished fare ($10,855).[/aside]
Business Class Round-the-World award ticket for less than travel to the South Pacific alone
Let’s take a simple, 25,000-mile RTW itinerary: New YorkLondon-Hong Kong-Sydney-Los Angeles-New York. One flight-distance-redemption program charges as few as 145,000 miles for Business Class, while another wants double, 300,000 miles. Going with the former lets you circle the globe for less than Delta charges to the South Pacific (150,000 miles).
The marks are based on three criteria: ease of earning miles without flying the carrier; number of credit-card-transfer partners the airline has; and “Return on Miles” (i.e. the award price divided by the airfare).
Excluded are alliance-partner airlines that don’t offer any savings over a U.S. carrier’s program.
All Nippon Airways / ANA Mileage Club: B
This flightdistance program has the best redemption rate of any airline for an itinerary of up to 25,000 miles (our example), for which it charges 145,000 award miles. But it also has the highest rate (300,000 miles) for an itinerary of 50,000 miles.
American Airlines / AAdvantage: A
AA offers both a regional (all partners) and flight-distance (oneworld partners) mileage redemption. The carrier gets our best grade for the flight-distance chart it offers on oneworld partner airlines: 150,000 miles for an itinerary of up to 25,000 miles; 190,000 for up to 35,000 miles; and 220,000 for up to 50,000 miles.
Continental / OnePass: B
Continental offers a regional Star Alliance redemption at a rate of 220,000 miles until June 14. The following day the rate jumps to 260,000 miles. Act fast. Our grade reflects the lower rate; on June 15, the mark drops to a C+. Miles can be obtained via Amex Rewards and Starwood, but the latter is not recommended because of the exchange rate, two miles for one point.
Business Class Mileage Award Redemption Rates for Round-the-World Tickets
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Delta / SkyMiles: C
Delta offers a regional SkyTeam redemption rate of 280,000 miles, which can be obtained via Amex Rewards, Diners Club, and Starwood points.
Korean Air / Skypass: C+
Korean offers a regional SkyTeam redemption rate of 220,000 miles, the lowest of any SkyTeam alliance member. The drawback is that miles can only be transferred from Diners Club.
United / Mileage Plus: D
United offers a regional Star Alliance redemption rate of 300,000 miles. The drawback for mileage members is the awful exchange rate (2:1) the carrier imposes on transfers from Starwood, its only partner.
US Airways / Dividend Miles: C-
Alliance: Star Alliance. US Airways offers a regional Star Alliance redemption rate of 300,000 miles, the same as United, but receives a better grade because mileage members can buy the miles needed directly from the airline.